JC Master Legal News Issue 1186

Key Takeaways for This Issue

The China Securities Regulatory Commission has stressed the need to strengthen institutional development and optimize the structure of listed companies.
On November 18, Li Chao, Vice Chairman of the China Securities Regulatory Commission, stated at the sixth meeting of the third council of the China Listed Companies Association that the CSRC will intensify efforts to advance institutional reforms, optimize the structure of listed companies, strengthen regulatory oversight, and place a greater emphasis on investor protection.
The Supreme People’s Court has released typical cases on addressing malicious intellectual property litigation.
On November 19, the Supreme People’s Court released the “Report on the Intellectual Property Court of the Supreme People’s Court’s Efforts to Strengthen Integrity and Combat Malicious Litigation,” along with five typical cases illustrating its measures to address malicious intellectual property litigation.
The Supreme People’s Court has released typical cases on combating domestic violence for 2025.
Recently, the Supreme People’s Court released eight typical cases on domestic violence, focusing on issues of legal application, evidence evaluation, and response measures. The cases underscore that psychological abuse is equally classified as domestic violence, emphasize the principle of maximizing the best interests of minors, hold that violent discipline constitutes domestic violence, stipulate that perpetrators should generally not be granted direct custody of minors, and support compensation for domestic labor and damages.

Finance & Capital Markets

The National Administration of Financial Regulation convened a symposium on foreign-funded financial institutions.
On November 18, the National Administration of Financial Regulation convened a symposium for foreign-funded financial institutions in Hainan to hear reports on their operations and development plans and to discuss policy adjustments following the launch of closed-loop operations at the Hainan Free Trade Port.
The meeting emphasized that foreign‑invested financial institutions should leverage their global networks and specialized expertise, focusing on wealth management, retirement finance, green and low‑carbon initiatives, and cross‑border services, to meet Hainan’s cross‑border financial needs and attract international enterprises and skilled professionals to invest in the province. The National Administration of Financial Regulation will promote the early implementation of additional financial reform and opening‑up measures in Hainan, fostering a market‑oriented, law‑based, and internationally competitive business environment to support the high‑quality development of the Hainan Free Trade Port.
The China Securities Regulatory Commission has stressed the need to strengthen institutional development and optimize the structure of listed companies.
On November 18, Li Chao, Vice Chairman of the China Securities Regulatory Commission, stated at the sixth meeting of the third council of the China Listed Companies Association that the CSRC will intensify efforts to advance institutional reforms, optimize the structure of listed companies, strengthen regulatory oversight, and place a greater emphasis on investor protection.
The China Securities Regulatory Commission will advance the development of foundational institutional frameworks, optimize the structure of listed companies, strengthen end-to-end regulatory oversight, crack down on financial fraud, and foster a healthier market environment. Listed companies are required to enhance their information disclosure and corporate governance practices, fulfill their principal responsibilities, and uphold integrity, sound governance, innovative development, and proactive returns to investors. Meanwhile, the Listed Companies Association is expected to elevate its professional services, cultivate a robust market ecosystem, and reinforce coordination among stakeholders, thereby promoting the high-quality development of listed offices.

Commercial & Corporate

Ministry of Ecology and Environment: Ensure Proper Allocation of Emission Allowances in the Steel, Cement, and Aluminum Smelting Sectors
Recently, the Ministry of Ecology and Environment issued the “2024–2025 National Carbon Emissions Trading Scheme Quota Total and Allocation Plan for the Steel, Cement, and Aluminum Smelting Industries” (hereinafter referred to as the “Plan”).
The overall approach of the Plan is reflected in the following key aspects: First, it ensures the continuity and stability of the policy framework by retaining the core structure of free quota allocation based on carbon‑intensity controls. Second, it prioritizes regulatory focus and embodies the principle of “targeting large emitters while easing requirements for smaller ones.” Greenhouse gas emissions from fossil fuel combustion and industrial process reactions are excluded from coverage; only indirect emissions arising from purchased electricity and heat are accounted for. Furthermore, independent electric‑arc furnace steel producers and standalone steel‑rolling enterprises with relatively low carbon emissions will, for the time being, be exempted from quota‑based management. Third, it seeks to maintain an appropriate balance between corporate quota surpluses and deficits by benchmarking offices’ actual carbon‑intensity against industry‑wide reference levels.
The Ministry of Human Resources and Social Security has issued the Opinions on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (III).
Recently, the Ministry of Human Resources and Social Security issued the “Opinions on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (No. 3)” (hereinafter referred to as the “Opinions”), which shall take effect from the date of issuance.
The “Opinions” elaborate on the specific circumstances pertaining to the “work hours, workplace, and work-related cause” in workers’ compensation determinations, as well as the “commute to and from work.” At the same time, the document clarifies that medical‑malpractice torts do not preclude workers’ compensation recognition for injuries arising from the original accident. Furthermore, casualties resulting from statutory causes—such as intentional criminal acts by the employee, intoxication or drug use, self‑injury, or suicide—are ineligible for workers’ compensation. The Opinions also set forth criteria for recognizing work‑related injuries sustained in traffic accidents during commutes where the employee is not primarily at fault, as well as guidelines for determining the date of death due to a work‑related incident, and establish relevant provisions for workers’ compensation claims involving telework. In addition, the Opinions require social insurance administrative authorities to accept, in accordance with the law, workers’ compensation applications arising from cases of “illegal subcontracting or re‑subcontracting” and “individual reliance on another entity,” to adjust benefits based on changes in the level of re‑examination and appraisal, and to correctly interpret and apply the conditions governing newly incurred expenses. These measures aim to further enhance law‑based administration and effectively safeguard the legitimate rights and interests of both injured workers and employers.
The State Administration for Market Regulation is soliciting public comments on the “Guidelines for the Development of Special Equipment Safety Technical Specifications.”
Recently, the State Administration for Market Regulation issued the “Guidelines for the Development of Special Equipment Safety Technical Specifications (Draft for Public Comment)” (hereinafter referred to as the “Draft for Public Comment”). The public is now invited to submit comments, with the deadline for feedback set for December 21.
The Draft for Public Comment covers such matters as project initiation, drafting, review, solicitation of comments and deliberation, approval and promulgation, as well as revision. The Draft stipulates that any organization or individual may submit proposals to the General Administration’s special equipment safety supervision authority for the formulation or revision of special equipment safety technical specifications. The Special Equipment Bureau of the General Administration shall assess and substantiate the necessity and feasibility of such proposals, verify compliance with relevant requirements, and, where necessary, may entrust the General Administration’s Safety Technical Committee to conduct the assessment and justification. According to the Draft, the General Administration’s special equipment safety supervision authority shall review the draft of the safety technical specification. Following this review, opinions shall be sought from relevant departments, organizations, experts, and the general public. The final approved version of the safety technical specification shall be promulgated and put into effect upon approval by the State Administration for Market Regulation.

Litigation & Arbitration

The Supreme People’s Court has released typical cases on addressing malicious intellectual property litigation.
On November 19, the Supreme People’s Court released the “Report on the Intellectual Property Court of the Supreme People’s Court’s Efforts to Strengthen Integrity and Combat Malicious Litigation,” along with five typical cases illustrating its measures to address malicious intellectual property litigation.
The cases encompass scenarios such as patent holders’ abuse of litigation rights, inducement of evidence collection, concealment of patent‑evaluation reports, and disproportionate timing of lawsuits coupled with exorbitant damage claims. The second‑instance judgment clarifies that determining malicious litigation requires examining the legal basis of the right, subjective malice, the resulting harm, and the causal link. In addressing malicious litigation, the court upholds the principle of full compensation, covering reasonable expenses, lost expected profits, and measures to mitigate adverse effects. Some cases highlight the impact on publicly listed companies and order public statements to redress negative repercussions. The ruling also underscores the need for prudent assessment of malicious litigation, thereby safeguarding legitimate rights‑enforcement.
The Supreme People’s Court has released typical cases on online protection for minors and the punishment of related crimes.
On November 20, the Supreme People’s Court released three typical cases involving online protection for minors and the punishment of illegal and criminal acts.
Case One clarifies that a network operator’s use of a minor’s likeness without the guardian’s consent constitutes an infringement, requiring an apology and compensation for losses. Case Two holds that when a minor insults others online, thereby infringing on their right to reputation, the guardian shall bear tort liability. Case Three finds that a minor, induced by harmful online content, committed the crime of extortion; accordingly, the minor was sentenced in accordance with the law, and a judicial recommendation was issued to short‑video platforms, urging them to strengthen content moderation and mechanisms for protecting minors.
The Supreme People’s Court has issued clarifications on the application of laws in environmental and resource-related adjudication.
On November 20, the Supreme People’s Court released “Selected Q&A from the Legal Answers Website (Batch No. 32) — Environmental and Resource Law Special Topic.”
Clarification on legal questions: Liability for ecological and environmental damage may be addressed through various alternative restoration measures, which must take into account both economic feasibility and the party’s capacity to perform. The number of *Cymbidium* orchids, a nationally protected plant of Grade II, may be counted either as individual plants or as clumps, with their value determined based on the proceeds from illicit sale or an appraisal report. The act of “ring-barking” does not directly constitute logging; however, if such action results in the death of trees and is subsequently followed by opportunistic felling, it may be deemed a disguised form of illegal logging. Illegally disposing of hazardous waste—specifically construction debris—and charging fees generally does not amount to the crime of illegal business operations unless environmental pollution is caused; if pollution does occur, criminal liability may be pursued in accordance with the law.
The Supreme People’s Court has released typical cases on combating domestic violence for 2025.
Recently, the Supreme People’s Court released eight typical cases on domestic violence, focusing on issues of legal application, evidence evaluation, and response measures. The cases underscore that psychological abuse is equally classified as domestic violence, emphasize the principle of maximizing the best interests of minors, hold that violent discipline constitutes domestic violence, stipulate that perpetrators should generally not be granted direct custody of minors, and support compensation for domestic labor and damages.
Case law clarifies the following: 1. Psychological violence, including verbal abuse, threats, and self‑harm intimidation, constitutes domestic violence; cohabitation prior to marriage may also establish a familial relationship. 2. In domestic violence cases, detailed statements from minors may be admitted as evidence, and expert opinions may be sought when necessary. 3. Practices such as violent discipline or sustained psychological abuse should be classified as domestic violence and may affect the determination of child custody. 4. The perpetrator is generally not deemed fit to have direct custody of the minor; changes in custody are ordered to safeguard the child’s best interests. 5. Compensation for the victim’s unpaid domestic labor and damages for divorce-related harm are supported, with property divided equitably to prevent harassment. 6. A one‑stop, coordinated intervention mechanism is emphasized: courts may promptly issue protection orders and collaborate with multiple agencies to ensure the victim’s safety.

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